Burlington Stores Inc. NYSE: BURL delivered another better-than-expected quarter on May 28, marking its 14th consecutive quarter of double-digit earnings growth.
The company also raised its full-year outlook as off-price retailers continue to benefit from demand among budget-conscious shoppers looking for bargains. Still, it wasn’t enough to satisfy investors, as shares fell sharply following the report.
Burlington Earnings Beat Expectations
Burlington Shops Today
Burlington Shops
- 52 week interval
- $218.52
▼
$351.85
- The P/E ratio
- 33.29
- Target Value
- $353.56
For the quarter, the company reported adjusted earnings per share (EPS) of $2.01, up 26% from last year’s earnings of $1.60 and above Wall Street expectations of $1.77 per share. Revenue rose 14% year-over-year (YOY) to $2.86 billion, beating analyst estimates by more than $57 million.
Comparable store (comp) sales increased 6% YOY, above the company’s guidance range of 2% to 4%, while gross margin expanded 30 basis points to 44.1% of net sales.
On the earnings call, Chief Executive Michael O’Sullivan noted, “These results add to an already impressive track record of turning sales growth into strong margin growth and revenue streams,” noted Chief Executive Michael O’Sullivan on the earnings call.
Burlington Raises Full-Year Guidance on Strong Unpriced Demand
The company also issued guidance for the second quarter and raised its full-year sales and earnings. For Q2, Burlington expects comp sales growth of 1% to 3%, with total sales up 10% to 12%. Operating margin is expected to expand 30 to 60 basis points YOY, while adjusted EPS is forecast to be between $2.05 and $2.20.
For the full year, Burlington now expects comp sales growth of 2% to 4%, up from prior guidance of 1% to 3%. Net sales are expected to rise 9% to 11%, from the previous outlook of 8% to 10%, while adjusted EPS is estimated between $11.45 and $11.80, up from the previous forecast of $10.95 to $11.45. The company also noted that it now expects to open 115 new stores, up from 110.
O’Sullivan also discussed how higher oil prices and the conflict in the Middle East have impacted the company’s outlook since the previous earnings day. Burlington remains optimistic about the second half of the year, although executives are taking a more cautious view than in March due to higher gasoline prices and the potential impact on inflation.
Still, O’Sullivan said a strong consumer base could work in Burlington’s favor if buyers are more focused on the item. “In fact, as a seller, it can turn into an opportunity,” he said.
Shares Tumble Despite Strong Quarter and Better Outlook
Burlington may have cleared Wall Street estimates, but not what the market expected. After the report, BURL stock initially fell about 8%, trading near $300, before recovering much of that decline in subsequent trading.
Price chart for Burlington Stores, Inc. (BURL) for Monday, June, 1, 2026
Prior to the earnings release, the stock had been performing for many years. After normalizing since the height of the pandemic, Burlington’s shares were trading around $110 in September 2022. Since then, the stock has risen nearly 175%, including a gain of more than 25% over the past year, leaving investors with a high bar for another quarter to beat and grow.
The post-earnings sell-off comes shortly after Burlington shares hit a 52-week high of $351 in April, which could signal some profit-taking following the stock’s multi-year rally. It could also indicate that investors were looking for strong growth in com sales and a strong outlook for comparable store sales.
During the earnings call, one analyst questioned whether Burlington’s focus on cash might have caused it to miss opportunities to drive additional comp growth in Q1. In response, O’Sullivan said, “I think we may have an opportunity to loosen our belts and be more aggressive in sales.”
Burlington Sells Compared to Unpriced Peers
The reaction to Burlington’s earnings was in stark contrast to some of its non-price peers, whose shares rose higher following their better-than-expected earnings reports.
Shares of TJX Companies Inc. NYSE: TJX rose more than 5% after the company’s latest profit and loss earnings report on May 20, while Ross Stores Inc. NASDAQ: ROST gained more than 8% two days later following its strong Q1 report.
In terms of valuation, the three stocks have similar price-to-earnings (P/E) ratios, with Burlington trading at about 34x earnings, TJX at 30x, and Ross Stores at about 32x. The broader retail industry trades at a P/E ratio of 25x.
Burlington Stores Stock Forecast Today
$353.56
9.17% changedBuy Medium
Based on 20 Analyst Ratings
| Current Price | $323.88 |
|---|---|
| High Forecast | $411.00 |
| Average prediction | $353.56 |
| Low Prognosis | $310.00 |
Burlington Stores Stock Forecast Details
Despite Burlington’s earnings decline, Wall Street analysts remain very bearish on the stock.
Prior to this report, the 12-month price average stood at around $357, which is more than 18% upside from current levels.
The stock currently has a consensus rating of Neutral Buy, based on 16 Buy ratings and five Hold ratings. The analyst consensus price of $351 implies about an 8% upside.
While Burlington’s latest quarter highlighted the continued strength of the off-price sector, the market’s reaction suggests that investors may have been hoping for more signs of strength in comparable store sales.
Still, with shoppers still focused on value amid economic uncertainty, Burlington could be in good shape if bargain hunting continues to drive retail spending.
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